Recently, the well-known British company IDTechEx released a comprehensive RFID report, comprehensively analyzing the RFID industry, covering low frequency (LF), high frequency (HF), ultra high frequency (UHF) passive RFID, battery-assisted passive, active RFID and chipless RFID provides in-depth analysis and detailed forecasts for technologies, players and markets in this field.

rfid report

IDTechEx conducted an objective analysis of primary data collected through interviews with key manufacturers in the entire RFID value chain (many of which provided data to IDTechEx under a non-disclosure agreement, allowing the data to be aggregated and utilized), as well as secondary processing data from all available sources.

More than 20 years of professional accumulation in the RFID industry has provided extensive forecasts and in-depth analysis unmatched by other research institutions.

Table of Contents

Understand the Current Market Situation through the RFID Report

The future of RFID looks bright, The market environment is also light. The global RFID market is expected to expand further in 2023, despite some unresolved challenges such as the global macroeconomic recession and shortages of chips and other raw materials.

IDTechEx

According to IDTechEx, the RFID market size will rise from US$12.8 billion in 2022 to US$14 billion in 2023. This includes passive/active RFID tags, readers, and software and services for tags, cards, fobs, and all other forms.

In the field of UHF, the retail business is the application with the largest demand for RFID tags, and the business using RFID continues to grow strongly. According to IDTechEx research, by 2023, the apparel retail industry alone will need nearly 24 billion RFID tags.

This still has a lot of market space, RFID only accounts for about 30% of the total target market of clothing. IDTechEx expects that more retail products beyond clothing will be tagged with RFID in the next few years. Walmart’s mandate for RFID tagging of retail items other than apparel is expected to bring significant volume growth to the industry.

Contactless card sales remain the most successful segment in HF, mainly driven by contactless payment, transportation and secure access applications, with an estimated 3.1 billion contactless cards required in 2023.

Animal tags (such as pigs, sheep, and pets) are still important in the LF field because it is still a legal and regulatory requirement in many countries or regions, and it is estimated that 771 million RFID tags will be used in this field in 2023.

Overall, IDTechEx forecasts that 39.3 billion passive RFID tags will be sold in 2023, up from 33 billion in 2022 and a 20% year-over-year increase. This growth is mainly due to passive UHF RFID tags.

However, sales of UHF (RAIN RFID) tags will account for 40% of HF tag sales (including NFC) by 2023, mainly because HF tags for security (such as payment, access, etc.) Higher than most disposable UHF (RAIN) tags.

Learn About Future Emerging Technologies from the RFID Report

Radio Frequency Identification (RFID) technology has been around for decades and has many applications in tracking and identifying items in various industries, including logistics, retail, and healthcare. However, as technology continues to evolve, there are emerging technologies that could pose a threat to RFID in certain areas.

rfid technology

There are still some emerging technologies that could potentially pose a threat to RFID:

Bluetooth Low Energy (BLE) and Near Field Communication (NFC): BLE and NFC are both wireless communication technologies that operate at short distances. These technologies can be used for many applications, including contactless payments, access control, and asset tracking. While they are not direct competitors to RFID, they could potentially replace RFID in some applications.

QR Codes: QR codes are two-dimensional barcodes that can be scanned with a smartphone camera. They can be used for many applications, including advertising, ticketing, and inventory management. QR codes are a low-cost alternative to RFID and can be easily printed on labels or tags.

Barcode Scanning: Barcode scanning technology has been around for decades and is widely used in retail and logistics for inventory management. Barcode scanners are faster and more accurate than RFID readers, and the cost of barcode technology is relatively low.

IoT Sensors: The Internet of Things (IoT) is a network of connected devices that can communicate with each other and the internet. IoT sensors can be used for many applications, including asset tracking, environmental monitoring, and predictive maintenance. While they are not direct competitors to RFID, they could potentially replace RFID in some applications.

while these emerging technologies could potentially pose a threat to RFID in certain areas, it is unlikely that RFID will be completely replaced in the near future. RFID technology has unique advantages, such as the ability to track items without line-of-sight and the ability to read multiple tags simultaneously.

Summary and Outlook

The report also identifies major players in each link of the value chain, and analyzes current and possible future large orders and milestone events. Some manufacturers that perform well in terms of shipments are not so eye-catching in terms of revenue, and vice versa.

Of course, not all manufacturers are willing to serve markets where prices are constrained but sales are high. For these players, IDTechEx looked at a number of emerging niche markets, as well as business opportunities in smaller markets with less competition.

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